Daily demand for cat litter at the Cat Caf in Jones is 1500ounces with...

Daily demand for cat litter at the Cat CafÃ© in Jones is 1500 ounces with a...

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Daily demand for cat litter at the Cat CafÃ© in Jones is 1500ounces with a standard deviation of
300 ounces. The average lead time is 5 days and the standarddeviation of lead time is 2 days.
Use this information to answer questions 44 to 46.
Suppose the cafÃ© wants to peg their service level at 99.5%. Whatis the level of safety
inventory they should carry?
A) between 7500 and 7510 ounces
B) between 3070 and 3080 ounces
C) between 1950 and 1960 ounces
D) between 7910 and 7920 ounces
Suppose the cafÃ© wishes to hold 7162 ounces of safety inventory.This is equal to how many
days of inventory?
A) 4.77 days
B) 5.12 days
C) 5.33 days
D) 5.67 days
Suppose the cafÃ© wishes to carry 10,728 ounces as their safetyinventory. What service level
would they achieve if standard deviation of demand over lead timeis 3,074 ounces?
A) 93.9%
B) 99.98%
C) 95.2%
D) 95.7%

Answer & Explanation Solved by verified expert

3.8 Ratings (543 Votes)

ConceptsSafety stock is given bywhere alpha is the service levelEL is the mean of lead time SigmaL is the standard deviationof lead timeED is the See Answer

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